Increasing Preference for Contactless Payment Methods to Restrain Global Fuel Card Market in Near Term, Says Fact.MR
Published : 20 Apr 2020 Industry: Consumer Goods
The global fuel card market is presently witnessing a downturn, at a time when people around the globe are resorting to social isolation, working from home, and reducing non-discretionary spending in the midst of the outbreak. Consumers are becoming more likely to accept contactless payments. New research shows that U.S. customers are becoming more interested in contactless payments, whereas more than half of current card payments in Germany are contactless compared as compared to 40% before the outbreak.
The global fuel card market is estimated to burgeon at a CAGR of over 6.5% over the forecast period (2020-2030). As digitization continues on an upward trend, most companies are scrambling to adapt to digital finance services. As a consequence, fuel card companies are set to seek FinTech-innovations, and establish a strong network among fleet managers across the globe. This report evaluates trends that are driving growth of each segment on a global level and offers potential takeaways that could prove substantially useful to fuel card providers looking to enter the market.
Key Takeaways of Fuel Card Market
- Europe is poised to capture more than 30% share in the global fuel card market in 2019, generating an incremental opportunity of over US$ 280 Bn by the end of 2030.
- South Asia fuel card markets are projected to grasp more than 11% of the revenue share in 2019. Among the developing markets, East Asia fuel card market is projected to show a positive CAGR of over 8.5% during the forecast period, followed by South Asia with a CAGR of over 7.5%.
- Truck fleet operators captured remarkable market share (>65%) in 2019. The segment is prophesied to grow significantly owing to the rising digital transactions for the commercial fleet across the globe.
- Increasing demand for fuel cards is aiding fuel business due to suitable fuel management. Flourishing business across countries in South Asia and East Asia, respectively, is encouraging the presence of prominent service & card providers.
“Efficient management of the fleet by increased data collection and lesser fraudulent risks associated with it is facilitating the higher utilization of fuel cards” infers a Fact.MR analyst.
Enhancements in Fraud Management, Cost-Effectiveness to be Trump Cards for Market Expansion
The global fuel card market is moderately fragmented with major players such as FleetCor Technologies, Inc., WEX Inc., Voyager Fleet Card, Fuel Genie (Worldline IT Services Ltd.), H24 (Ingenico Group) and other players acquiring more than 15% of the overall market share. The key market players in the fuel card market are focusing on telematics, fraud management, and other developments to make more profitable business. Issuers in the fuel card market are focusing on cost-effective solutions of fuel card and bringing innovations such as real time updates which can meet the changing industrial requirements.
Find More Valuable Insights on the Global Fuel Card Market
Fact.MR, in its new offering, brings to fore an unbiased analysis of the global fuel card market, presenting historical demand data (2015-2019) and forecast statistics for the period, 2020-2030. The study divulges compelling insights on the sports compression clothing market on the basis of type of fleet, card type, subscription type, fleet type, use case across seven major regions.
About the Retail and Consumer Goods Division at Fact.MR
Retail and consumer goods analysts at Fact.MR have been categorically tracking the broader sub-industries to keep themselves abreast of the recent happenings in the market. Our practical approach to product design and pricing strategy contributes to the growth of businesses that are struggling to hit the ‘move-the-needle’ bottom line. With unmatched analytical diligence, the team at Fact.MR helps organizations design product differentiation strategies and introduce exclusive product(s) to their existing portfolio. For more retail industry insights, visit here.